Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments

Derivative Financial Instruments

Note 13 — Derivative Financial Instruments

The Company is exposed to financial market risks arising from changes in currency exchange rates. Changes in currency exchange rates could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted cash flows. The Company entered into monthly forward derivative contracts with the intent of mitigating a portion of this risk. The Company only used derivative financial instruments in the context of hedging and not for speculative purposes and had not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts were recorded as “Other operating expense (income), net” in the Company’s Consolidated Statements of Operations. The Company executed derivative transactions with highly rated financial institutions to mitigate counterparty risk.

The Company did not have any outstanding derivative contracts at December 31, 2019 and 2018. The following table shows the gains and (losses) from currency exchange derivatives during the years ended December 31, 2018 and 2017, which are included in “Other operating expense (income), net” in the Consolidated Statements of Operations as well as the weighted average notional amount of derivatives outstanding for each period:

	Year ended December 31,
	2018				2017
		Gains (losses)		Weighted average notional amount		Gains (losses)		Weighted average notional amount
	(in thousands)
Foreign currency exchange forwards	$	327	$	2,869	$	(6)	$	314